Transform KYC from a repetitive document submission process into a reusable, privacy-preserving identity verification flow. Tokenized identity using verifiable credentials for regulated financial ecosystems.
Today, every financial institution performs KYC independently. A customer opening accounts at multiple banks submits passport copies, proof of address, and photographs to each — repeatedly. This creates friction, data exposure, and operational costs estimated at billions annually across the financial sector.
Tokenized KYC solves this by issuing a verifiable credential — a "KYC token" — after a single KYC check. This token can be reused across any participating institution. The customer controls which data to share, and the institution verifies the token cryptographically without contacting the original KYC provider.
A bank, fintech, or KYC provider verifies the customer's identity documents (passport, utility bill, biometrics) following regulatory requirements (AML, CFT, CDD).
The provider issues a Verifiable Credential containing the KYC verification result. The credential includes verification level, timestamp, and issuer identity — but not the underlying documents.
When opening another account, the customer presents the KYC token from their wallet. Selective disclosure reveals only what the new institution needs (e.g., "verified at Level 2" not the full document scan).
The institution verifies the VC signature, checks the issuer's DID against a trust registry of approved KYC providers, confirms the verification level meets regulatory requirements, and checks revocation status — all without re-collecting documents.
Eliminates redundant KYC checks across institutions. Estimated 60-80% reduction in KYC operational costs per new account.
Sensitive documents are not shared between institutions. Only the verification outcome is presented as a cryptographic proof.
Every KYC token issuance and presentation is cryptographically auditable. Regulators can verify compliance without inspecting individual customer files.
Customer onboarding drops from days to minutes. Once KYC-verified, the token enables instant account opening at any participating institution.
AYANWORKS completed a Proof of Concept with India's National Payments Corporation of India (NPCI) for tokenized KYC in capital markets. The system enables investors to receive a reusable KYC token after a single verification, which can be presented to any broker, depository, or market participant on the Unified Markets Interface (UMI). This eliminates the current practice of submitting KYC documents to every market intermediary separately.
The PoC demonstrated that verifiable credentials can meet the regulatory requirements of India's securities market while reducing KYC overhead and improving investor experience.
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